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    Principles of Macroeconomics Study Set 12
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    Exam 19: Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates
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    If the MPM Is 0
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If the MPM Is 0

Question 61

Question 61

Multiple Choice

If the MPM is 0.4, then a $2,000 increase in income will


A) increase imports by $5,000.
B) increase imports by $800.
C) increase exports by $5,000.
D) increase exports by $800.

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